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EUR/USD Drops Sharply as US Employers Add More Jobs Than Anticipated

February 3, 2012 by

EUR/USD was rising today, but sank after US nonfarm payrolls came out better than was predicted and unemployment rate unexpectedly decreased. Service industry also showed positive tendencies. On the negative side, factory orders grew with slower pace than was expected by specialists. The currency pair attempts to rebound now, but remains below the opening level.

Nonfarm payrolls came out today, showing growth by 243k jobs in January. That’s much better than the expected reading 150k and the December growth by 203k. Even more pleasant surprise was a decline of unemployment rate to 8.3%, even though forecasters promised it to stay unchanged at 8.5%. (Event A on the chart.)

ISM services PMI advanced to 56.8% in January from 52.6% in December. Average forecast was less optimistic, promising an increase to 53.1. (Event B on the chart.)

Factory orders rose 1.1% in December. The increase was below the November growth by 2.2% (revised from 1.8%) and the expected figure of 1.5%. (Event B on the chart.)

EUR/USD for 2012-02-03

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